Axiall Reports 1st Quarter Results

The company reported net sales of $993.7 million for the first quarter
of 2014, compared to net sales of $1.1 billion reported for the first
quarter of 2013. The company reported a Net loss attributable to Axiall
of $11.6 million, or $0.17 loss per diluted share, for the first quarter
of 2014, compared to Net loss attributable to Axiall of $3.5 million, or
$0.06 loss per diluted share, for the first quarter of 2013. The company
reported an Adjusted Net Loss of $5.3 million and Adjusted Loss per
Share of $0.08 for the first quarter of 2014, compared to Adjusted Net
Income of $45.1 million and Adjusted Earnings per Share of $0.75 for the
first quarter of 2013. The company reported Adjusted EBITDA of $67.6
million for the first quarter of 2014, compared to Adjusted EBITDA of
$133.4 million for the first quarter of the prior year.

“Our first quarter results were challenged by the unusually cold weather
and the outage at our PHH VCM facility,” said Paul Carrico, president
and chief executive officer. “As we move into the second quarter, we
expect the typical building products business seasonality and warmer
weather to lead to improvement in demand, pricing and costs in our
businesses. We have restarted the PHH VCM facility and expect to reach
full operating rates later this quarter. Additionally, we remain focused
on meeting our run rate synergy target of $140 million by the end of
this year.”

Three Months Ended

March 31,

(In millions, except per share data)

2014

2013

Net loss attributable to Axiall

$

(11.6

)

$

(3.5

)

Pretax charges (benefits):

Fair value of inventory – purchase accounting

-

10.2

Merger-related and other, net

4.5

9.4

Costs to attain Merger-related synergies

4.6

0.7

Long-lived asset impairment charges, net

0.6

2.6

Gain on acquisition of controlling interests

-

(23.5

)

Loss on redemption and other debt costs

-

78.5

Total pretax charges

9.7

77.9

Provision for taxes related to these items

3.4

29.3

After tax effect of above items

6.3

48.6

Adjusted Net Income (Loss)

$

(5.3

)

$

45.1

Diluted loss per share attributable to Axiall

$

(0.17

)

$

(0.06

)

Adjusted Earnings (Loss) Per Share

$

(0.08

)

$

0.75

Adjusted EBITDA

$

67.6

$

133.4

Chlorovinyls

In the Chlorovinyls segment, first quarter 2014 net sales were $682.2
million compared to $614.5 million during the first quarter of 2013. The
increase in net sales was primarily driven by inclusion of 3 months of
sales results from the PPG chemicals business we acquired in January
2013 in the first quarter of 2014 compared to 2 months in the first
quarter of 2013, partially offset by lower vinyls operating rates and
vinyls sales volumes attributable to the outage at the company’s PHH VCM
manufacturing facility as well as operating and logistical impacts of
severe weather during the period. The segment posted Adjusted EBITDA of
$76.2 million in the first quarter of 2014, compared to Adjusted EBITDA
of $134.2 million for the same quarter in the prior year. The $58.0
million decrease in Adjusted EBITDA was primarily due to higher natural
gas and maintenance costs, lower electrochemical unit (ECU) values, and
the lower operating rates primarily driven by the outage at our PHH VCM
manufacturing facility and the impact of severe weather on operating
rates and logistics.

Building Products

In the Building Products segment, net sales were $154.7 million for the
first quarter of 2014, compared to $162.2 million for the same quarter
in the prior year. The net sales decrease was driven by the impact of a
weaker Canadian dollar coupled with a 3 percent decrease in sales volume
in Canada, partially offset by a 13 percent increase in U.S. sales
volume. On a constant currency basis, net sales for the quarter
decreased by 1 percent. The segment reported breakeven Adjusted EBITDA
for the first quarter of 2014, compared to negative $2.6 million of
Adjusted EBITDA during the same quarter of the prior year. The $2.6
million increase was primarily due to improved conversion costs and
lower selling, general and administrative costs.

Aromatics

In the Aromatics segment, net sales decreased to $156.8 million for the
first quarter of 2014 from $284.5 million for the first quarter of 2013.
During the first quarter of 2014, the segment recorded Adjusted EBITDA
of $4.9 million, compared to Adjusted EBITDA of $13.3 million during the
same quarter in 2013. The decreases in sales and Adjusted EBITDA were
primarily due to lower export sales volumes of phenol driven by
significant new phenol capacity additions in Asia during 2013, which
also resulted in lower domestic cumene sales volume.

Conference Call

The company will discuss first-quarter financial results and business
developments via conference call and webcast on Tuesday, May 6, at 10:00
a.m. Eastern time. To access the company's first-quarter conference
call, please dial (877) 820-5027 (domestic) or (706) 645-4014
(international). Playbacks will be available from 11:00 a.m. Eastern
time on Tuesday, May 6, until 11:59 p.m. Eastern time on Monday, May 19.
Playback numbers are (855) 859-2056 or (800) 585-8367. The conference
call ID number is 40256702.

About Axiall

Axiall Corporation is a leading integrated chemicals and building
products company. Axiall, headquartered in Atlanta, Georgia, has
manufacturing facilities located throughout North America and in Asia to
provide industry-leading materials and services to customers. For more
information, visit www.axiall.com.

Cautionary Statements About Forward-Looking Information

This press release contains certain statements relating to future events
and our intentions, beliefs, expectations, and predictions for the
future. Any such statements other than statements of historical fact are
forward-looking statements within the meaning of the Securities Act of
1933 and the Securities Exchange Act of 1934. Words or phrases such as
“anticipate,” “believe,” “plan,” “estimate,” “project,” “may,” “will,”
“intend,” “target,” “expect,” “would” or “could” (including the negative
variations thereof) or similar terminology used in connection with any
discussion of future plans, actions or events generally identify
forward-looking statements. These statements relate to, among other
things: (i) our integration of the PPG chemicals business with our other
businesses; (ii) our expectations regarding the benefits of the merger
with the PPG chemicals business, including the amount of synergies
expected to be achieved; (iii) our end-market product portfolio; (iv)
the expected cost advantage of energy in North America and the expected
duration of any such cost advantage; (v) our expectations regarding, and
the timing of, a possible joint venture arrangement for the design,
construction and operation of an ethane cracker; and (vi) other
statements of expectations concerning matters that are not historical
facts. These statements are based on the current expectations of our
management. There are a number of risks and uncertainties that could
cause our actual results to differ materially from the forward-looking
statements included in this press release. These risks and uncertainties
include, among other things: (i) a material adverse change, event or
occurrence affecting Axiall or the chemicals business formerly owned by
PPG with which Axiall merged; (ii) the ability of Axiall to successfully
complete its integration of the businesses of that chemicals business ,
which may result in the combined company not operating as effectively
and efficiently as expected; (iii) the possibility that the merger and
related transactions may result in other unexpected costs or liabilities
; (iv) the possibility that Axiall may not be able to negotiate or
consummate an arrangement for the design and construction of an ethane
cracker on commercially reasonable terms, or at all; and (v)
uncertainties regarding future prices, industry capacity levels and
demand for Axiall’s products, hazards and risks associated with
manufacturing Axiall’s products, including explosions, fires and
unscheduled down time, raw materials and energy costs and availability,
feedstock availability and prices, changes in governmental and
environmental regulations, the adoption of new laws or regulations that
may make it more difficult or expensive to operate Axiall’s businesses
or manufacture its products, Axiall’s ability to generate sufficient
cash flows from its business after the merger, future economic
conditions in the specific industries to which its products are sold,
and global economic conditions.

In light of these risks, uncertainties, assumptions, and factors, the
forward-looking events discussed in this press release may not occur.
Other unknown or unpredictable factors could also have a material
adverse effect on Axiall’s actual future results, performance, or
achievements. For a further discussion of these and other risks and
uncertainties applicable to Axiall and its business, see Axiall’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2013, and
subsequent filings with the SEC. As a result of the foregoing, readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Axiall does not undertake, and expressly disclaims, any duty to update
any forward-looking statement whether as a result of new information,
future events, or changes in its expectations, except as required by law.

AXIALL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

March 31,

December 31,

(In millions, except share data)

2014

2013

Assets:

Cash and cash equivalents

$

86.5

$

166.5

Receivables, net of allowance for doubtful accounts of $6.2
million at March 31, 2014 and $5.5 million at December 31,
2013.

On January 28, 2013 we acquired substantially all of the assets and
liabilities of PPG Industries, Inc.’s (“PPG”) business relating to the
production of chlorine, caustic soda and related chemicals, through a
merger between a subsidiary of PPG and a subsidiary of the Company. The
purchase price for these transactions was approximately $2.8 billion and
consisted of: (i) the issuance of approximately 35.2 million shares of
our common stock valued at approximately $1.8 billion; (ii) the
assumption of $967.0 million of debt; and (iii) the assumption of
certain other liabilities including pension and other postretirement
obligations.

Adjusted Net Income (Loss) is defined as net income (loss) attributable
to Axiall excluding adjustments for tax effected cash and non-cash
restructuring charges and certain other charges, if any, related to
financial restructuring and business improvement initiatives, gains or
losses on redemption and other debt costs, and sales of certain assets,
certain purchase accounting and certain non-income tax reserve
adjustments, professional fees related to a previously disclosed and
withdrawn unsolicited offer and the merger with the chemicals business
formerly owned by PPG (the “Merger”), costs to attain Merger-related
synergies, goodwill, intangibles, and other long-lived asset impairments.

Adjusted Earnings (Loss) Per Share is calculated using Adjusted Net
Income (Loss) rather than consolidated net income calculated in
accordance with GAAP.

Adjusted EBITDA is defined as Earnings Before Interest, Taxes,
Depreciation, and Amortization, cash and non-cash restructuring charges
and certain other charges, if any, related to financial restructuring
and business improvement initiatives, gains or losses on redemption and
other debt costs, and sales of certain assets, certain purchase
accounting and certain non-income tax reserve adjustments, professional
fees related to a previously disclosed and withdrawn unsolicited offer
and the Merger, costs to attain Merger-related synergies, goodwill,
intangibles, and other long-lived asset impairments, and interest
expense related to the lease-financing transactions.

Axiall has supplemented its financial results with Adjusted Net Income
(Loss) and Adjusted Earnings (Loss) Per Share because investors commonly
use financial measures such as Adjusted Net Income and Adjusted Earnings
Per Share as a component of performance and valuation analysis for
companies, such as Axiall, that recently have engaged in transactions
that result in non-recurring pre-tax charges or benefits that have a
significant impact on the calculation of net income pursuant to GAAP, in
order to approximate the amount of net income that such a company would
have achieved absent those non-recurring, transaction- related charges
or benefits. In addition, Axiall has supplemented its financial results
with Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share
because we believe these financial measures will be helpful to investors
in approximating what Axiall’s net loss would have been absent the
impact of certain non- recurring, pre-tax charges and benefits related
to the Merger, the company’s issuance of its 4.875 Notes and the tender
offer for, and related redemption of, its 9 percent notes. Axiall has
supplemented its financial statements with Adjusted EBITDA because
investors commonly use Adjusted EBITDA as a main component of valuation
analysis of cyclical companies such as Axiall.

In addition, Axiall may compare certain financial information including
net sales on a constant currency basis. We present such information to
provide a framework for investors to assess how our underlying
businesses performed, excluding the effect of foreign currency rate
fluctuations, primarily fluctuations in the Canadian dollar. To present
this information, current and comparative prior period financial
information for certain businesses reporting in currencies other than
United States dollars are converted into United States dollars at the
average exchange rate in effect during the period, rather than the
average exchange rates in effect during the respective periods.

Adjusted Earnings (Loss) Per Share, Adjusted Net Income (Loss), Adjusted
EBITDA, and net sales on a constant currency basis are not measurements
of financial performance under GAAP and should not be considered as an
alternative to net income, GAAP diluted earnings per share or net sales
as measures of performance or to cash provided by operating activities
as a measure of liquidity. In addition, our calculation of Adjusted Net
Income (Loss), Adjusted Earnings (Loss) Per Share, Adjusted EBITDA and
net sales on a constant currency basis may be different from the
calculation used by other companies and, therefore, comparability may be
limited. Reconciliations of these non-GAAP financial measures to the
most comparable GAAP measures are presented in the tables set forth
below.

Adjusted Earnings Per Share Reconciliation

Three Months Ended

March 31,

2014

2013

Diluted loss per share attributable

to Axiall

$

(0.17

)

$

(0.06

)

Earnings (loss) per share related to

adjustments between net income

attributable to Axiall and Adjusted

Net Income (Loss)

0.09

0.81

Adjusted Earnings (Loss) Per Share

$

(0.08

)

$

0.75

Building Products Constant Currency Sales Reconciliation

Three Months Ended March 31,

(In millions)

2014

2013

Building Products net sales

$

154.7

$

162.2

Impact of currency exchange rates

5.7

-

Building Products constant currency sales

$

160.4

$

162.2

Adjusted EBITDA Reconciliations

Three Months Ended March 31, 2014

(In millions)

Chlorovinyls

Building Products

Aromatics

UnallocatedCorporate &Non-operatingexpenses,
net

Total

Adjusted EBITDA

$

76.2

$

-

$

4.9

$

(13.5

)

$

67.6

Costs to attain Merger-related synergies

(3.3

)

(a)

-

-

(1.3

)

(4.6

)

Long-lived asset impairment charges, net

-

(0.6

)

-

-

(0.6

)

Depreciation and amortization

(49.6

)

(8.7

)

(0.4

)

(2.0

)

(60.7

)

Interest expense, net

-

-

-

(18.3

)

(18.3

)

Provision for income taxes

-

-

-

7.7

7.7

Other

-

(1.1

)

-

(0.6

)

(1.7

)

(b)

Consolidated net income (loss) (c)

$

23.3

$

(10.4

)

$

4.5

$

(28.0

)

$

(10.6

)

(a) Includes $2.4 million of plant reliability improvement
initiatives that are included in cost of sales on our condensed
consolidated statements of income.

(b) Includes $4.5 million Merger-related and other, net, partially
offset by $1.1 million for debt issuance cost amortization and
$1.7 million of lease financing obligations interest.

(c) Earnings of our segments exclude interest income and expense,
unallocated corporate expenses and general plant services, and
provision for income taxes.